Observers: Solar energy can be the foundation for energy justice and green economic growth in Indonesia

Jakarta – Solar energy is not just a source of electricity, but a strategic instrument for providing fair access to the community, creating new economic opportunities, and strengthening national climate action. This message was the core of the Indonesia Solar Summit (ISS) 2025, which took place in Jakarta on Thursday, September 11.

At the forum titled “Solarizing Indonesia: Powering Equity, Economy, and Climate Action,” the government affirmed its ambitious goal of building 100 gigawatts (GW) of solar power plants by 2060. The target consists of 80 GW of distributed solar power plants and 20 GW of centralised solar power plants, in line with President Prabowo Subianto’s directive in August 2025.

“Solar energy has a potential of nearly 3,200 GW in Indonesia. If utilised optimally, it could drive the energy transition and boost economic growth by up to 8%,” explained Eniya Listiani Dewi, Director General of EBTKE at the Ministry of Energy and Mineral Resources.

According to Eniya, the government has prepared three main solar power plant programs: rooftop solar power plants, large-scale solar power plants, and floating solar power plants. These programs will also support the productivity of the real sector, including agriculture, fisheries, health services, and education. “To realise this, the availability of the solar supply chain, EPC capacity, and local labour are key,” she added.

Challenges and breakthroughs

Solar development in Indonesia still faces serious obstacles. According to Fabby Tumiwa, CEO of IESR, this is due, among other things, to complicated regulations, lengthy licensing processes, limited funding, and the unpreparedness of the national electricity grid.

“Fossil fuel subsidies make electricity from coal-fired power plants seem cheap, which is unfair to solar power plants. Additionally, our electricity grid remains traditional and is not yet equipped to accommodate distributed solar energy. The solution is to modernise the system, build a smart grid, and strengthen energy storage technology,” said Fabby.

Fabby considers the President’s commitment to build 100 GW of solar power plants to be a revolutionary idea. “But the implementation must be community-based: bankable system quality standards, a strong supply chain, and empowerment of local communities to ensure the sustainability of solar power projects,” he said.

ISS 2025 also launched the Solar Archipelago initiative, a collective commitment by regional leaders, businesses, associations, and communities to make solar energy the driving force behind energy equity, a green economy, and a sustainable climate.

The IESR study even found the potential for 165.9 GW of solar power projects in 290 land locations and 38.13 GW in 226 water locations, which are considered economically feasible.

As a token of appreciation, ISS 2025 presented Solar Awards to several parties. Ida Bagus Dwi Giriantari and Eko Adhi Setiawan won the individual category award, while West Java and Central Java provinces won the local government category. On the corporate side, Coca-Cola Europacific Partners Indonesia (CCEP Indonesia) was recognised for its consistent use of solar energy in its operations.

ISS 2025 is the fourth edition since 2022, a collaboration between IESR, the Ministry of Energy and Mineral Resources, the Coordinating Ministry for Economic Affairs, with support from Pertamina New & Renewable Energy, Tenggara Strategics, and AESI. (Hartatik)

Banner photo: shutterstock

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